THE CONSTITUTION OF
KAGETI JOINT YOUTH SAVINGS AND CREDIT
ASSOCIATION
Compiled by:
Semata. P & Lawrence.L
JUNE-2020
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KJY ASSOCIATION CONSTITUTION ©2020
KAGETI JOINT YOUTH SAVINGS AND CREDIT
ASSOCIATION CONSTITUTION
Registered No:
Address:
Akageti-Kiruhura District,
Uganda
June-2020
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KJY ASSOCIATION CONSTITUTION ©2020
PREAMBLE
The Residents of Akageti recognised the problems faced by members in accessing financial services
from banks due to the rigidity, unfavourable terms and conditions set by banks, micro finance and
other money lending institutions.
The June-2020 General meeting of the residents of Akageti recommended establishment of Kageti
Joint Youth Savings and Credit Association in Akageti.
Similar to the Associations in other locations, to address problems faced by members in accessing
manageable credit facilities.
The Association membership shall be open to all Residents of Akageti who meet all the Requirements
for membership in this Association.
FUTURE BENEFITS OF THE KJY ASSOCIATION
1) KJY-Association shall have substantial cash resources invested so as to realize optimal
returns. These shall be availed to members for increased mutual benefit. It will also have
suitable facilities ready for business without further capital investment.
2) As a Corporate Customer, KJY-Association shall have the capacity to negotiate cheaper
banking services for the benefit of its members. These may be in form of low interest rates
and favourable credit terms.
3) It shall offer new flexible banking products at competitive rates.
4) Maximum benefit for members in terms of cost savings and convenience.
5) Optimal use of KJY-Association facilities and resources.
6) Increased return on members' investments.
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KJY ASSOCIATION CONSTITUTION ©2020
DEFINITIONS AND INTERPRETATIONS
1) ‘‘Active member’’ a member who is currently making his/her required monthly
contributions.
2) ‘‘Deposits’’ means a sum of money paid on terms under which it shall be repaid, with or
without interests, and either on demand or at a time or in circumstance agreed by or on behalf
of the person making the Association receive it.
3) ‘‘Dividends’’ means the share of the Association’s surplus allocated to members or an
amount of profit the organisation pays to members who own shares in the Association.
4) ‘‘General Meeting’’ means meeting convened by the Association to conduct its business.
5) ‘‘Institutional capital’’ means disclosed reserves, retained earnings, grants and donations all
of which are not meant to be expended unless on liquidation of the Association.
6) ‘‘KJY’’ means Kageti Joint Youth.
7) ‘‘Liquid funds’’ means cash and deposits with a maturity of not more than 90 days.
8) ‘‘Ltd’’ mean Limited
9) ‘‘Management Committee’’ means the governing body of the Association to whom the
management of its affairs is entrusted.
10) ‘‘Member’’ means a person admitted to membership in accordance with these By-laws.
11) ‘‘Member in good standing’’ means a member who is currently on the repayment of his/her
loan due to the Association, has not in any way acted in a manner which is potentially
damaging to the Association and has fully complied with the policies and rules of the
Association.
12) ‘‘Next of kin’’ means any person who, under law or customs, is responsible for administering
the estate of a deceased member.
13) ‘‘Net surplus’’ means the amount of income in excess of expenses of the Association
including interest payable on deposits, but before dividends payable on shares.
14) ‘‘Savings’’ means deposits payable on demand
15) ‘‘Share Capital’’ means the permanent members’ equity in form of common stock and
includes all disclosed reserves, retained earnings, grants or donations.
16) ‘‘Special Resolution’’ means a resolution passed by at least two thirds (2/3) of the members
present and voting at a special General meeting of the Association.
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KJY ASSOCIATION CONSTITUTION ©2020
TABLE OF CONTENT
PREAMBLE ........................................................................................................................................... i
FUTURE BENEFITS OF THE KJY ASSOCIATION ............................................................................ i
DEFINITIONS AND INTERPRETATIONS ..................................................................................... ii
TABLE OF CONTENT ....................................................................................................................... iii
CHAPTER ONE: BACKGROUND .................................................................................................... 1
ARTICLE 1: APPLICABLE LAW, NAME AND DOMICILE ............................................................ 1
ARTICLE 2: VISION ............................................................................................................................. 1
ARTICLE 3: MISSION .......................................................................................................................... 1
ARTICLE 4: OBJECTIVES ................................................................................................................... 1
ARTICLE 5: ASSOCIATION’S PRINCIPLES ..................................................................................... 2
ARTICLE 6: CORE VALUES ............................................................................................................... 2
CHAPTER TWO: MEMBERSHIP POLICY .................................................................................... 3
ARTICLE 7: QUALIFICATIONS FOR MEMBERSHIP ...................................................................... 3
ARTICLE 8: APPLICATION & ADMISSION FOR MEMBERSHIP ................................................. 3
ARTICLE 9: REFUSAL OF MEMBERSHIP ........................................................................................ 3
ARTICLE 10: MEMBERSHIP RIGHTS ............................................................................................... 3
ARTICLE 11: MEMBERS OBLIGATIONS ......................................................................................... 4
ARTICLE 12: LIABILITY OF A MEMBER......................................................................................... 4
ARTICLE 13: MEMBER’S NEXT OF KIN .......................................................................................... 5
ARTICLE 14: CESSATION OF MEMBERSHIP .................................................................................. 5
ARTICLE 15: VOLUNTARY WITHDRAWAL ................................................................................... 5
ARTICLE 16: EXPULSION FROM MEMBERSHIP ........................................................................... 6
ARTICLE 17: PAYMENTS RESULTING FROM WITHDRAWAL, TERMINATION OR............... 6
EXPULSION FROM MEMBERSHIP ................................................................................................... 6
CHAPTER THREE: FUNDS OF THE ASSOCIATION.................................................................. 7
ARTICLE 18: ECONOMIC RESOURCES ........................................................................................... 7
ARTICLE 19: NETWORTH OF THE ASSOCIATION ........................................................................ 7
ARTICLE 20: RESTRICTION TO SHARE HOLDING ....................................................................... 7
ARTICLE 21: SCALE DOWN AND REINTEGRATION OF THE SHARE VALUE ........................ 7
ARTICLE 22: TRANSFER OF SHARES .............................................................................................. 8
ARTICLE 23: DEPOSITS ...................................................................................................................... 8
ARTICLE 24: ACKNOWLEDGEMENT FOR PAYMENTS ............................................................... 8
ARTICLE 25: EXPENDITURE ............................................................................................................. 8
ARTICLE 26: DEPOSIT OF FUNDS .................................................................................................... 8
ARTICLE 27: LIQUIDITY MANAGEMENT ...................................................................................... 8
ARTICLE 28: GENERAL RESERVE FUND ....................................................................................... 9
ARTICLE 29: DISPOSAL OF SURPLUS ............................................................................................. 9
CHAPTER FOUR: CREDIT POLICY ............................................................................................ 10
ARTICLE 30: GUIDING PRINCIPLES OF THE CREDIT POLICY ................................................ 10
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KJY ASSOCIATION CONSTITUTION ©2020
ARTICLE 31: AREA OF LENDING ................................................................................................... 10
ARTICLE 32 GENERAL LENDING .................................................................................................. 10
ARTICLE 33 LOAN PRODUCTS ....................................................................................................... 10
ARTICLE 34: LOAN RESCHEDULING AND REFINANCING ...................................................... 11
ARTICLE 35: REQUIREMENT FOR QUALIFICATION OF LOANS ............................................. 11
ARTICLE 36: LOAN APPLICATION ................................................................................................ 12
ARTICLE 37: LOAN APPRAISAL ..................................................................................................... 12
ARTICLE 38: LOAN APPROVAL/REJECTION ............................................................................... 12
ARTICLE 39: LOAN SECURITY ....................................................................................................... 12
ARTICLE 42: LOAN RECOVERY PROCESS ................................................................................... 13
CHAPTER FIVE: GOVERNANCE OF THE ASSOCIATION..................................................... 14
ARTICLE 43: STRUCTURE OF THE ASSOCIATION ..................................................................... 14
ARTICLE 44: GENERAL MEETING ................................................................................................. 14
ARTICLE 45: NOTICE OF MEETING ............................................................................................... 14
ARTICLE 46: REQUIRED MAJORITY ............................................................................................. 14
ARTICLE 47: ENFORCEMENT OF DECISIONS ............................................................................. 15
ARTICLE 48: CONDUCTING OF MEETINGS ................................................................................. 15
ARTICLE 49: NOMINATION ............................................................................................................. 15
ARTICLE 50: VOTING ....................................................................................................................... 15
ARTICLE 51: POWERS AND DUTIES OF THE ANNUAL GENERAL MEETING ...................... 15
ARTICLE 52: SPECIAL GENERAL MEETING ................................................................................ 16
ARTICLE 53: THE MANAGEMENT COMMITTEE ........................................................................ 16
ARTICLE 54: GENERAL FUNCTIONS AND RESPONSIBILITIES OF THE MANAGEMENT
COMMITTEE ....................................................................................................................................... 16
ARTICLE 55: SPECIFIC FUNCTIONS AND RESPONSIBILITIES OF THE COMMITTEE ......... 17
ARTICLE 56: THE CHAIRPERSON AND VICE CHAIRPERSON.................................................. 17
ARTICLE 57: THE TREASURER....................................................................................................... 18
ARTICLE 58: THE GENERAL SECRETARY ................................................................................... 18
ARTICLE 59: COMMITTEE MEETINGS .......................................................................................... 18
ARTICLE 60: QUORUM ..................................................................................................................... 18
ARTICLE 61: LEGAL REPRESENTATION ...................................................................................... 18
ARTICLE 62: LIABILITY OF THE COMMITTEE ........................................................................... 18
ARTICLE 63: TERMS OF OFFICE .................................................................................................... 19
ARTICLE 64: QUALIFICATIONS FOR BECOMING A COMMITTEE MEMBER ....................... 19
ARTICLE 65: IMPEDIMENTS AND PROHIBITIONS ..................................................................... 19
ARTICLE 66: CONFLICT OF INTEREST - DISCLOSURE AND EXCUSE ................................... 19
ARTICLE 67: SUSPENSION FROM THE COMMITTEE................................................................. 19
ARTICLE 68: PAYMENT FOR SERVICES TO THE ASSOCIATION ............................................ 20
ARTICLE 69: VACANCIES ................................................................................................................ 20
ARTICLE 70: SUPERVISORY/AUDIT COMMITTEE ..................................................................... 20
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KJY ASSOCIATION CONSTITUTION ©2020
ARTICLE 71: POWERS AND DUTIES OF THE SUPERVISORY COMMITTEE .......................... 20
ARTICLE 72: CREDIT COMMITTEE ............................................................................................... 21
ARTICLE 73: ASSOCIATION EMPLOYEES ................................................................................... 21
ARTICLE 74: REMUNERATION ....................................................................................................... 21
CHAPTER SIX: PROCEDURE FOR THE REMOVAL OF COMMITTEE MEMBERS:
ADMINISTRATIVE INQUEST ........................................................................................................ 22
ARTICLE 75: ADMINISTRATIVE INQUEST .................................................................................. 22
ARTICLE 76: PROCEDURE ............................................................................................................... 22
ARTICLE 77: CRIMINAL OFFENCES .............................................................................................. 22
ARTICLE 78: APPEAL ....................................................................................................................... 22
CHAPTER SEVEN: ACCOUNTS, RECORDS AND APPLICATION OF OPERATIONS ...... 23
ARTICLE 79: FINANCIAL YEAR ..................................................................................................... 23
ARTICLE 80: BOOKS, RECORDS AND ACCOUNTING ................................................................ 23
ARTICLE 81: AUDITS ........................................................................................................................ 23
ARTICLE 82: GUIDING PRINCIPLES .............................................................................................. 23
ARTICLE 83: AUTHORIZATION TO SIGN DOCUMENTS ........................................................... 23
CHAPTER EIGHT: MISCELLANEOUS ........................................................................................ 24
ARTICLE 84: DISSOLUTION AND LIQUIDATION ....................................................................... 24
ARTICLE 85: CONFIDENTIALITY ................................................................................................... 24
ARTICLE 86: FIDELITY BOND COVERAGE .................................................................................. 24
ARTICLE 87: POLITICAL AND RELIGIOUS NEUTRALITY ........................................................ 24
ARTICLE 88: VESTED RIGHTS ........................................................................................................ 24
ARTICLE 89: PENALTIES AND FINES............................................................................................ 25
ARTICLE 90: EMERGENCY FUNDS ................................................................................................ 25
ARTICLE 91: RESOLVING DISPUTES ............................................................................................ 26
ARTICLE 92: INTERPRETATION OF THE BY-LAWS ................................................................... 26
ARTICLE 93: AMALGAMATION ..................................................................................................... 26
ARTICLE 94: AMENDMENTS TO THE CONSTITUTION ............................................................. 26
ARTICLE 95: AVAILABILITY AND ACQUISITION OF BY-LAWS ............................................. 26
ARTICLE 96: COMMON SEAL ......................................................................................................... 26
ARTICLE 97: ACCEPTANCE ............................................................................................................ 26
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KJY ASSOCIATION CONSTITUTION ©2020
CHAPTER ONE
BACKGROUND
ARTICLE 1: APPLICABLE LAW, NAME AND DOMICILE
(a) This Constitution is made under the overriding authority of The Cooperative Statute 1991
hereinafter called the “Statute” and The Cooperative Societies Regulations 1992 hereinafter
called “Regulations” to which reference shall be made in case of doubt.
(b) The Association shall be called: KAGETI JOINT YOUTH SAVINGS AND CREDIT
ASSOCIATION (KJY-ASSOCIATION).
(c) Domicile and Area of Operation: AKAGETI, KIRUHURA, UGANDA.
However, by decision of the Committee, the Association may open branch offices in any other
location in Uganda, whenever economically justifiable, provided such a decision shall be ratified by
the members at their general meeting.
ARTICLE 2: VISION
To be a leading self-sustaining Savings and Credit Association in Uganda
ARTICLE 3: MISSION
To mobilize financial resources and provide affordable credit facilities through prudent management
practices in collaboration with stakeholders for the economic well-being of the members.
ARTICLE 4: OBJECTIVES
Under the general principles of financial safety and soundness, the purpose of the Savings and Credit
Association is to provide its members with the following:
(a) Offer members savings and credit services and other financial products as may be required by
members from time to time.
(b) Provide members with credit facilities for purposes of development through acquisition of
assets.
(c) Provide an opportunity for members to improve their respective economic, social and financial
conditions.
(d) Encourage and develop a savings culture among members so as to develop a wide capital base
for accessing external sources of funds at fair and reasonable interest rates as a result of
enhanced bargaining power.
(e) Offer savings, deposits and related services earning competitive rates of interest while
minimising financial risks on such savings.
(f) Provide loan services at cost allowing the Association to cover its costs including legal reserves,
reserves for loans and other required reserves.
(g) Minimise the risk of loan defaulters through efficient and effective loan recovery mechanisms.
(h) Facilitate members to set up development and/or investment projects through continuous
training programmes on the proper use of credit.
(i) Professionally manage the Association to ensure operational and financial sustainability.
(j) Any other necessary and legally-authorised and economically-feasible financial services
demanded by its members.
To fulfil these objectives, the Association may develop loans and other financial services and
products, promote and implement the following activities:
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KJY ASSOCIATION CONSTITUTION ©2020
(a) Savings mobilisation programmes and branding campaigns.
(b) Credit programmes and services based on the borrowers’ repayment capacity.
(c) Individual as well as joint financial programmes and services with other entities with similar
objectives.
(d) Educational programmes on savings, their use and consumption, as well as consumer protection
programmes regarding financial services and general cooperative issues.
(e) For the attainment of the above objectives, the Association may do all acts and things that are
permissible under The Cooperative Statute, the Regulations and these By-laws.
ARTICLE 5: ASSOCIATION’S PRINCIPLES
In order to achieve the objects for which it is established, the Association shall practice the following
Co-operative Principles;
(a) Voluntary and open membership. The Association shall always be guided by the principle of
voluntary and open membership in its member recruitment drive without political, ethnic,
religious, gender or social discrimination.
(b) Democratic member control. The Association shall be fully controlled by members who will
have equal voting rights on the basis of one member one vote, exercised through their delegates.
(c) Economic participation by members. All members shall contribute equally to the capital of the
Association and share in the results of its operations.
(d) Autonomy and independence. The Association shall operate on mutually acceptable terms with
stakeholders who will ensure its autonomy and independence.
(e) Education, training and information. The Association shall foster reciprocal, on-going
education programmes for members, leaders and staff so that they can teach and learn from each
other or from the appropriate resource persons in understanding and carrying out their respective
roles.
(f) Co-operation among Co-operatives. In order to better serve the interests of the members, the
Association shall actively co-operate with other co-operatives locally, regionally, nationally and
internationally.
(g) Concern for community in general. The Association shall show concern to the community in
which it exists and operates. The Association is expected to continuously educate the public
about its aims, its organizations, achievements and its plans for the future.
ARTICLE 6: CORE VALUES
The Association shall embrace the following core values;
(a)
(b)
(c)
(d)
(e)
(f)
Sound Corporate Governance
Customer Centric
Fairness
Commitment
Engaged Leadership
Empowerment
The Committee shall endeavour to provide timely information, promote co-operation and
understanding amongst members and with other co-operative institutions locally, nationally and
internationally.
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KJY ASSOCIATION CONSTITUTION ©2020
CHAPTER TWO
MEMBERSHIP POLICY
ARTICLE 7: QUALIFICATIONS FOR MEMBERSHIP
A person of either gender shall be eligible for Association membership upon meeting the following
qualifications:
(a) Is an employee of Amos Dairies Ltd, other registered organizations, Government or selfemployed individuals and approved by the Committee.
(b) Is between eighteen (18) and forty (40) years of age.
(c) Is of good character.
(d) Has regular income from employment and/or business.
(e) Has been introduced to the Association by a member in good standing.
(f) Is a spouse or child of a member in good standing
(g) Is not directly carrying out activities detrimental to the objectives of the Association.
(h) Has not been convicted of a criminal offence involving fraud and or dishonest.
(i) Accepts the objectives of the Association, the obligations of members and other conditions as
per the Constitution of the Association.
(j) An employee of the Association or its subsidiary may become a member of the Association
but shall not be a delegate or member or the Committee.
(k) Any legal person, or similar association, whose membership is made up primarily of
individuals who also meet the eligibility requirements for the Association’s membership.
ARTICLE 8: APPLICATION & ADMISSION FOR MEMBERSHIP
(a) Every applicant upon meeting the above qualifications; shall fill an application form for
membership which when admitted will form part of the membership register of the
Association.
(b) The completed form upon receipt and admission shall be given a membership number, fledin the membership file and the number given shall be entered in the members register.
(c) Every member on applying for membership shall be required to sign a statement of
declaration of integrity.
(d) An applicant shall pay an entrance fee of Ugx 5,000/= which may change with time as
determined by the Committee. The registration fee is non-refundable.
(e) The new member shall purchase at least one share valued at Ugx 10,000/= to be raised to the
minimum amount prescribed by the Committee from time to time.
ARTICLE 9: REFUSAL OF MEMBERSHIP
(a) The Committee reserves the right of refusal of the admission for membership
(b) Any applicant member who shall believe to qualify can appeal to the General meeting.
ARTICLE 10: MEMBERSHIP RIGHTS
As per the Constitution of the Association, a member is entitled but not limited to:
(a) Receive periodically and regularly, or upon request, and at least once a year a statement of
Accounts containing the individualized record of his/her credit and debit transactions.
(b) Attend and participate in the general elections of the Committee members. Each member
shall have one vote irrespective of the member's total shareholding.
(c) Elect or be elected as a Committee member unless otherwise prohibited by any other law.
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KJY ASSOCIATION CONSTITUTION ©2020
(d) Attend and participate in general meetings of the Association.
(e) Use the Association's services according to the Policies and Procedures approved by the
Committee.
(f) Submit projects or initiatives to the committee for the improvement of the Association’s
services.
(g) Appoint his/her Next of keen (s).
(h) Access all legitimate information relating to the Association, including register of members,
minutes of the Annual General Meetings, Supervisory Committee Reports to the AGM, and
Annual Accounts at the registered office of the Association subject to the Association's
policies and regulations.
ARTICLE 11: MEMBERS OBLIGATIONS
As per the Constitution of the Association, the members of the Association shall be obliged to:(a) Be faithful and honest in all their dealings with the Association
(b) Observe the Association’s rules and regulations whenever transacting any business with the
Association.
(c) Observe the code of conduct and ethics for the Association and in particular desist from any
corrupt practices in all dealings with the Association.
(d) Refrain from engaging in the business of money lending in competition with the Association.
(e) Protect the image of the Association and avoid unnecessary publicity, incitement or careless
talk that can injure the reputation of the Association.
(f) Abide by the Resolutions of the members passed at the general meeting irrespective of having
been
(g) Pay their debt obligations to the Association without fail and save regularly with the
Association to mobilize funds for lending to the members.
(h) Seek co-operative education to improve membership awareness and enlightenment.
(i) Support issues put forth that improve the sustainability of the Association and promote the
goodwill of all members.
(j) Buy and pay for shares and make any other payments provided in this Constitution of the
Association.
(k) Attend all Association meetings and education forums and take part in decision-making.
(l) Notify non-members and encourage them to join the Association.
(m) Bring out problems affecting the Association and look for solutions.
(n) Make use of the services of the Association as stated in the objectives of the Association.
(o) Comply with the rules and regulations set their forth in this constitution, and General
Meeting’s Resolutions.
All loans shall be made to a member of the Association in accordance with the conditions laid down in
the Association's credit policy.
ARTICLE 12: LIABILITY OF A MEMBER
The liability of a member shall be limited to 3 times the nominal value of the shares held by the
member.
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ARTICLE 13: MEMBER’S NEXT OF KIN
(a) Every member of the Association shall appoint his/her Next of kin
(b) No member of the Association shall be entitled to appoint more than one Next of kin.
(c) For the purpose of transfer to the Next of kin, the value of any share or interest shall be
represented by the sum actually paid by the member holding it.
(d) If for any reason on the death of a member, the Next of kin does not exist, the Association
may pay any money due to the deceased member to the personal representative or recognised
heir of the deceased.
(e) In the event of any death of the Next of kin, or of the member desiring to cancel such
nomination, the member may from time to time nominate in writing another Next of kin. In
such a manner, the necessary alteration shall be made in the register of members.
(f) Disputes regarding shares, deposits or any other interests of the deceased member shall be
referred to the Management Committee.
ARTICLE 14: CESSATION OF MEMBERSHIP
Membership shall cease if a member:
(i)
(ii)
(iii)
(iv)
(v)
Fails to contribute deposits for three consecutive months.
Voluntarily withdraws from the Association.
Dies or becomes certifiably insane, by a qualified medical practitioner.
Is being declared bankrupt by a court of law.
Ceases to hold the qualifications for membership as per the Constitution of the
Association.
A re-admission fee imposed to former member who rejoins the Association shall remain the same as
the entrance fee and that member shall be treated as a new member.
ARTICLE 15: VOLUNTARY WITHDRAWAL
a) Where a member wishes to withdraw from the Association, he will be required to give the
Association a written notice of 30 days of his intention to withdraw.
b) A charge of 5% of the total expenses of the Association will be imposed on him or as may be
prescribed by the Committee from time to time, subject to availability of funds.
c) No member shall be allowed to withdraw from the Association unless his outstanding loans are
repaid in full.
d) A member who intends to withdraw will be required to provide alternative guarantors for loans
guaranteed.
e) A member who has withdrawn from the Association may be accepted to re-join.
f) In spite of losing their status as members, individuals who have ceased saving with the
Association but still have outstanding loan balances or outstanding guarantee for other
members' loans, shall continue being responsible for their respective obligation unless
alternative arrangements acceptable to the Association are made.
g) A member who is withdrawing shall pay to the Association an amount out of his deposits as
may be prescribed in the Membership Policy.
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KJY ASSOCIATION CONSTITUTION ©2020
ARTICLE 16: EXPULSION FROM MEMBERSHIP
The Committee or the General Meeting may expel a member who:(a)
(b)
(c)
(d)
(e)
Acts in any way contrary to the interests of the Association.
Fails to pay his/her loan or part of the loan due for a period exceeding three months.
Fails to pay monthly contributions to the Association.
Violates the rules and regulations, policies and procedures of the Association.
Is found to have wilfully furnished false particulars in his application for membership to the
Association.
The said member shall be allowed to present his/her defence and taking into consideration the
member’s defence, the committee shall initiate an administrative inquiry and take a decision on its
findings within 15 days. The committee shall report on any member suspended by it to the next
General Meeting, which shall have power to expel or reinstate the member.
Upon formal and written announcement and proof that a member has committed a violation
punishable by expulsion, the Committee shall provide written notice to the member setting forth the
reasons for the proposed expulsion, and grant 30 days for the member to take action on his/her
defence.
ARTICLE 17: PAYMENTS RESULTING FROM WITHDRAWAL, TERMINATION OR
EXPULSION FROM MEMBERSHIP
(a) Withdrawal, expulsion, or termination will not exonerate a member from any personal or
membership liability.
(b) The Association will reimburse the withdrawing member the difference between the credit
and debit account balances, subject to availability of funds and the financial results of the
fiscal year before the withdrawal, termination or expulsion from membership.
(c) In the case of a member withdrawing voluntarily, such a member shall give notice of 30
calendar days within which refund of his/her net balance in his/her favour shall be made.
(d) When membership is terminated, the Association shall recover all balances in its favour from
the said member.
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KJY ASSOCIATION CONSTITUTION ©2020
CHAPTER THREE
FUNDS OF THE ASSOCIATION
ARTICLE 18: ECONOMIC RESOURCES
To meet its economic purpose, the Association shall rely on financial resources, such as:
b) A Registration fee of Ugx 5,000/= or an amount or as may be prescribed by the Committee
from time to time.
c) A minimum of one share valued at Ugx 10,000/= to be purchased by each member monthly or
as may be prescribed by the Committee from time to time.
d) A percentage of 5% of the total expenses incurred by the Association shall be deducted from
each member who wishes to withdraw from the Association.
e) Sale of additional shares to members who will be willing to increase their shareholding above
the initial allocation.
f) Shares shall also be sold to other members who are not currently subscribing to the
association.
g) Donations, grants, Government assistance, fundraisings and other income generating activities
that may be set up from time to time.
h) Through collective bargaining, the KJY-Association shall negotiate better deals for the benefit
of its members.
i) Interest obtained from loans extended to members and non- members.
j) Personal deposits in form of savings.
k) Charges on the loan application forms.
l) Penalties and fines.
m) Emergency funds.
n) External loans obtained in accordance with the Statute and the Regulations.
o) Unconditional reserves approved by the general meeting of members.
p) Any surplus resulting from operation of the Association.
ARTICLE 19: NETWORTH OF THE ASSOCIATION
The net worth of the Association is made up of:
(a) Share capital: The nominal value of each share issued to a member is currently equivalent to
Ugx 10,000/=.
(b) Institutional capital: The legal and voluntary surplus reserves, which shall remain
undistributed.
ARTICLE 20: RESTRICTION TO SHARE HOLDING
(a) The minimum amount to be accepted towards the purchase of shares is Ugx 10000 per month.
(b) No member shall hold more than one third of the total shares in the Association.
(c) A member can buy 1-5 shares per a month.
ARTICLE 21: SCALE DOWN AND REINTEGRATION OF THE SHARE VALUE
With the prior knowledge of either annual or special general meeting of members, the value of
individual members shall be reduced when the Association’s real assets value becomes lower than the
aggregate liabilities. The loss shall be proportionately shared among all individual share certificates.
Successive surpluses shall justify reversing the reduction process, only to the extent of the reduction.
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KJY ASSOCIATION CONSTITUTION ©2020
ARTICLE 22: TRANSFER OF SHARES
(a) As per the Constitution of the Association and approval of the Management Committee, a
member may at any time transfer part of his shares to any other member of the Association
provided that his shares not falling below 50 shares of Ugx 10,000 each.
(b) No transfer of shares shall be valid until the General Secretary of the Association has
registered effectively such transfer.
(c) A transfer fee of Ugx 10,000 and as may be determined by the Management Committee from
time to time shall be paid to the Association by the Transferor.
ARTICLE 23: DEPOSITS
(a) The Association shall have a saving policy.
(b) All withdrawable deposits shall attract interest at a rate prescribed by the management
Committee from time to time.
(c) The amount accumulated in the non-withdrawable deposit accounts may be used as collateral
against borrowings and shall be refunded only when a member withdraws from the
Association provided he has fully repaid all his debts and obligations, and is free from any
guarantee.
(d) A member may be refunded the amount saved in his non-withdrawable deposit account within
30 days after giving a written notice.
(e) Non- withdrawable deposits shall attract interest at a rate to be determined by the
Management Committee.
ARTICLE 24: ACKNOWLEDGEMENT FOR PAYMENTS
Money paid in or out on accounts of shares, deposits, loans interests, fees or fines shall be evidenced
by an entry in the member’s personal account of the Association and an official receipt in the names
of the Association
ARTICLE 25: EXPENDITURE
The expenditure of the ASSOCIATION shall be guided by the approved budget at the annual general
meeting and the work plans.
ARTICLE 26: DEPOSIT OF FUNDS
The Association’s funds shall be deposited in banks, financial organisations or institutions approved,
controlled and supervised by the state, consistent with the investment policies approved by the
committee.
ARTICLE 27: LIQUIDITY MANAGEMENT
(a) The Management Committee shall formulate the Liquidity policy for the Association.
(b) The Management Committee shall put in place a contingency plan to handle liquidity matters.
(c) The plan shall include procedures for making up liquidity shortfalls in emergency situations
and back-up liquidity strategy for circumstances in which the normal approach to funding
operations are disrupted.
(d) The Association shall adhere to laws and regulations governing Association Liquidity.
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KJY ASSOCIATION CONSTITUTION ©2020
ARTICLE 28: GENERAL RESERVE FUND
The Association shall maintain or replace as appropriate a general institutional capital reserve equal to
10% of its total assets. Such reserves cannot be in any way distributed, except in the case of the
Association’s dissolution
ARTICLE 29: DISPOSAL OF SURPLUS
Subject to the Act, By-laws and approval by the Annual General Meeting, any surplus resulting from
operations of the Association during any financial year, shall be disposed of as follows;
(a) Not less than 10% shall be credited to the Statutory Reserve Fund.
(b) The balance may be disposed of as decided at the Annual General Meeting as follows:(i) Paying Dividends on shares
(ii) Paying it into the institutional capital to which no member has a claim.
(iii) Paying interest on deposits to members on record at the closure of the financial year.
(iv) An amount not exceeding 10% of the remaining net balance may be paid to any charitable
purpose in the community.
(v) In any way approved by the General Meeting of members.
(vi) Paying a gratuity of Honoraria to Management and Supervisory Committee which shall
not exceed 5% of the total surplus unless otherwise reviewed by the General Meeting of
the Association.
The detailed policies and procedures shall be provided for by the Management Committee in the
Dividends policy approved by the General meeting.
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KJY ASSOCIATION CONSTITUTION ©2020
CHAPTER FOUR
CREDIT POLICY
ARTICLE 30: GUIDING PRINCIPLES OF THE CREDIT POLICY
(a) Loans shall be given to KJY Association members and Non-members once guaranteed by
members.
(b) Loans shall be properly appraised and approved
(c) Disbursement of loans shall be done as per approval terms and conditions;
(d) Interest income shall be collected and recognized in the accounting period that it is earned;
(e) Proper records on loans shall be kept
(f) Effective monitoring and control
ARTICLE 31: AREA OF LENDING
(a)
(b)
(c)
(d)
Development/Business
Education
Asset acquisition
Emergencies;
ARTICLE 32 GENERAL LENDING
(a) A variety of loan products shall be developed after a careful research has been done and
demand established to serve the needs of members.
(b) A member shall be allowed to run all loan products as long as the pay slip accommodates.
(c) The Association is currently charging an interest of 10% per month on each loan on a
reducing balance method.
(d) Loans will be disbursed on first come first served basis.
(e) Members will be eligible for loans after three (3) months of Active membership.
(f) Maximum loan given to a member shall be three (3) times of the borrower’s normal shares.
(g) The Minimum repayment period is currently one month for Emergency loans and 5 months
for other loan products.
(h) The minimum amount granted for a loan is currently Ugx 30,000 and Maximum Ugx. 500,000
(i) A member applying for a loan should undertake to pledge future salary, benefits and terminal
dues from the employer towards loan repayment before the Association grants such a loan.
(j) The non-salaried members will provide adequate proof of consistent cash flows from their
businesses or financial undertakings to go towards loan repayment.
(k) Eligibility for a loan shall be subjected to the borrower’s ability to pay.
The Association shall keep members informed of the effective monthly interest rates charged on loans.
All Association-supporting documentation shall reflect (as closely as possible) the final cost for the
borrower, so as to allow members make an educated decision and assume a well-defined obligation.
ARTICLE 33 LOAN PRODUCTS
a) Business/development loan
Conditions
(a) The maximum amount granted for Business loans is currently Ugx 500,000
(b) Pegged on three times of the borrower’s normal shares
(c) This loan is currently repaid up to a maximum period of 5 months.
(d) The loan must be fully secured by two (2) guarantors
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KJY ASSOCIATION CONSTITUTION ©2020
b) Emergency Loan
This product shall be given to cater for unforeseen happenings beyond a member’s control
Conditions
(a) The maximum amount granted for Emergency loans shall be Ugx 100,000
(b) The loans shall be repaid within a period of 1month.
(c) No member shall have more than one Emergency loan at any one time
(d) The loan must be fully secured by the loan applicant.
c) School Fees Loans
This product shall be for the purpose of paying School fees ONLY.
Conditions
(a) The member must attach fees structure/s on the application form
(b) School fees loans are currently repaid within a period of 5 months.
(c) The maximum amount granted for School fees loans is currently Ugx 500,000
(d) The loan must be fully secured by two (2) guarantors
d) Asset loans
Conditions
(a) The member must attach quotation on the application form
(b) The maximum amount granted for Asset loans is currently Ugx 500,000
(c) Product loans are currently repaid within a period of 5 months.
(d) The upper limit shall be determined by the member’s ability to repay.
(e) Loan application must be supported by the member’s latest two (2) pay slips.
(f) The loan must be fully secured by two (2) guarantors
ARTICLE 34: LOAN RESCHEDULING AND REFINANCING
(a) Top Up loans shall be available to those servicing development loans and have the ability
to service both loans concurrently.
(a) To qualify for the top up, the member must have paid at least 75% of the total amount
outstanding (i.e. principal and interest) before applying for a top up/additional loan.
(b) Top up loan is 25 % of the development loan granted.
(c) The top up amount requested shall be treated as a new loan
(d) Must be fully secured by 2 guarantors.
(e) No refinancing of Asset and school fees loans.
(f) Other terms and conditions of the original apply.
ARTICLE 35: REQUIREMENT FOR QUALIFICATION OF LOANS
The following are the requirements for a member of KJY ASSOCIATION to qualify for loan:
(g) A member must have completed at least 3 months of active membership.
(h) He must have saved at least one-third (1/3) of the amount he wants to borrow one month
before he can apply for a loan.
(i) He must request a maximum loan amount not exceeding 3times his savings and subject to a
maximum of 50% of the total savings in the Association.
(j) He must have not defaulted on any outstanding loan or guaranteed a defaulting borrower.
(k) Any boosting of savings by a member shall only be considered for a loan after three months.
(l) A member who withdraws from the Association and re-joins later will be treated as a new
member for the purpose of this credit policy.
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KJY ASSOCIATION CONSTITUTION ©2020
ARTICLE 36: LOAN APPLICATION
(a) All applications for loan shall be made on prescribed forms by the Association.
(b) False information on application form shall lead to automatic disqualification.
ARTICLE 37: LOAN APPRAISAL
All loans shall be appraised as per the terms and conditions of the loan type.
ARTICLE 38: LOAN APPROVAL/REJECTION
(a) All loans shall be approved by the Credit committee.
(b) No member of the loan approving committee shall be present when his/her loan is being
considered.
(c) Applicants will be informed of the decision passed.
(d) If a member is not satisfied with the decision passed by the Credit Committee, such a member
will be free to submit a written appeal to the Committee within 7 days from the date a
decision was passed by the Credit Committee.
ARTICLE 39: LOAN SECURITY
(a) Unless the loan applied for is equal to or less than a member’s total deposits, it must be
secured by guarantors i.e. all loans must be fully (100%) secured.
(b) There will be a maximum of two (2) guarantors, but the minimum shall be determined by the
terms and conditions of the loan.
(c) All guarantors must be members of the Association.
(d) The obligation of the previous guarantors shall cease upon completion of the loan or change
of guarantors but subject to new guarantors being accepted by the Association.
(e) No member will be allowed to guarantee more than four loans.
ARTICLE 40: LOAN REPAYMENT
(a) Deductions for loan repayment shall commence not later than the month following that in
which the loan was paid to the member.
(b) A member may repay his/her loan and interest in whole or in part prior to its maturity.
(c) A member’s savings pledged as security for another member’s loan shall not be surrendered
to offset his/her outstanding loan, unless the former can provide alternative security for the
latter’s loan.
(d) Loan repayment period may not be extended beyond the period the member specified in the
loan application form.
(e) Upon cessation of membership, a member is required to pay all existing loans in the
Association.
ARTICLE 41: DEFAULT MANAGEMENT
(a) The guarantors shall be notified of the defaulted loan within 7 days after the default occurs.
(b) A loan shall be considered to be in default if instalments are missed in whole or part and
remain unpaid for a period of 14 days after.
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KJY ASSOCIATION CONSTITUTION ©2020
ARTICLE 42: LOAN RECOVERY PROCESS
(a) The management shall make efforts to collect loans considered to be in default.
(b) Where the loan and interest balance is equal or less than the member’s savings, it shall be
recovered from the savings.
(c) Where a member defaults and the Association is unable to recover the loan from his savings,
the loan shall be recovered from the guarantors.
(d) No member shall be allowed to withdraw from the Association if in default or has guaranteed
a loan in default until the loan is cleared.
(e) Communication to loan defaulters shall be made through written notices.
(f) Services of debt collectors shall be engaged 14 days after the guarantor fails to honour the
obligation.
(g) When a member dies while repaying a loan that is not in default, the loan balance and interest
shall be recovered from member’s savings only keeping Guarantors from the loan burden.
Where a member dies and has a loan that is in default, the loan shall be recovered from member’s
savings and guarantors if inadequate.
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KJY ASSOCIATION CONSTITUTION ©2020
CHAPTER FIVE
GOVERNANCE OF THE ASSOCIATION
ARTICLE 43: STRUCTURE OF THE ASSOCIATION
As per the Constitution of the Association, the Association’s business shall be run by:
(a)
(b)
(c)
(d)
(e)
The General Meeting of Association.
The Management Committee
The Credit Committee
The Supervisory Committee (Auditors)
Association members
ARTICLE 44: GENERAL MEETING
(a) As per the Constitution of the Association, the General Meeting is the Association’s main
governing body with the most comprehensive powers to address the Association’s business.
(b) There shall be the Annual general meeting (AGM) and Special meetings of members.
(c) The notice for the Annual general meetings shall clearly specify all the issues to be discussed
while the Special general meetings shall deal exclusively with the issues for which they were
convened.
ARTICLE 45: NOTICE OF MEETING
(a)
(b)
(c)
(d)
(e)
The committee shall call a general or special meeting of members through the media
channel most accessible to the Association’s members at least fourteen (14) calendar days
before the meeting date. Such notice shall specify the date, time, place and the items to be
on the agenda to be considered.
In case of the Annual general meeting, the notice shall state that the financial reports for
the fiscal year have been made available at the Association’s office and social media
groups for members’ information. Where appropriate, the financial reports shall be
distributed to members before or during the meeting.
The annual general meeting shall be convened within sixty (60) calendar days following
the closing of each financial year.
Except when convened by the Registrar, a general meeting’s quorum shall be established
with the attendance of 40% of the eligible members, OR by 50 members present,
whichever is less.
In the event that the required quorum has not assembled on the meeting day, a second
notice of the meeting shall be published for seven (7) days later. In such an event, the
meeting shall be validly held irrespective of the number of members in attendance.
ARTICLE 46: REQUIRED MAJORITY
As per the Constitution of the Association, a ⅔ (two-thirds) majority of the members present at the
general meeting shall approve liquidation, split, mergers, decision reducing the total assets of the
Association by at least 5% and amendment of the Constitution of the Association.
Any other motion shall be approved by a simple majority of votes.
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KJY ASSOCIATION CONSTITUTION ©2020
ARTICLE 47: ENFORCEMENT OF DECISIONS
(a) Any decision taken by the general meeting shall be binding on all members present, absent
and dissidents.
(b) However, members may exercise their rights of objection and separation, about decisions
related to the Association’s conversion into a different organisation or merger.
ARTICLE 48: CONDUCTING OF MEETINGS
(a) The chairperson shall call for the meetings of the Association to discuss matters concerning
the Association’s business.
(b) The Chairperson of the Association or, in his/her absence, the Vice Chairperson shall preside
at all general meetings and at all meetings of the committee except when convened by the
Registrar or his representative.
(c) He/she shall perform such duties as he may be directed to perform by the committee, not
inconsistent with the provisions of this Constitution.
(d) Where both the Chairperson and Vice Chairperson are absent, the committee shall appoint
from within itself an interim Chairperson who will preside over that meeting.
ARTICLE 49: NOMINATION
The Chairperson shall call for nominations from the floor.
ARTICLE 50: VOTING
(a) Voting shall be by secret ballot, and on a simple majority subject to Article 46 of these ByLaws.
(b) However, by simple majority of members present at a general meeting an alternative method
may be used.
(c) An organisation having membership in the Association may be represented and have its vote
cast by the designated member or shareholder of the organisation.
ARTICLE 51: POWERS AND DUTIES OF THE ANNUAL GENERAL MEETING
The general meeting has both the right and responsibility:
(a) To receive and consider the reports of the committee and the supervisory committee.
(b) To receive and consider management financial statements, opinion of the supervisory
committee and/or external audits regarding such statements.
(c) To consider work plans, income and expenditure budgets presented by the committee.
(d) Give direction to the committee.
(e) To decide on committee recommendations regarding appropriation of surplus or losses.
(f) To confirm removal of committee members from office, denial of admission, and
expulsion of members.
(g) To decide on any other matters, than the supervisory committee.
(h) To approve the maximum liability which the Association may incur.
(i) To decide on any other matters, than those reserved for special general meetings of
members by the Statute.
(j) To approve the sale of any fixed asset of the Association whose value is at least 2% of the
total assets of the Association.
(k) To choose an auditor for the Association as provided under the Statute.
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KJY ASSOCIATION CONSTITUTION ©2020
ARTICLE 52: SPECIAL GENERAL MEETING
(a) Subjected to the provisions of Article 48, members, committee or Registrar may cause a
special general meeting to consider and resolve the following matters, which pertain
exclusively to its field of competence:
(i) Amendment of the Constitution.
(ii) Liquidation of the Association.
(iii) Reducing or increasing the value of the share certificates.
(iv) Conversion or merger with other Savings and Credit Cooperative Societies.
(v) Any other business identified and agreed upon as an item of the day’s agenda.
(b) A special general meeting shall be convened by the committee on receipt of a demand of such
a meeting signed by 50 members.
(c) If within 14 days following the receipt of demand for the meeting, the committee fails to
convene the meeting, such members may convene the meeting giving 7 days’ notice, giving
reasons for the meeting and highlighting the fact that the committee has failed to convene the
meeting.
ARTICLE 53: THE MANAGEMENT COMMITTEE
(a) The Management committee shall be responsible for overall direction of the Association and
determination of its policies.
(b) The Management committee shall consist of 5 to 9 members, who shall include a Chairperson,
a Vice Chairperson, General Secretary, Treasurer and 5 other committee members elected by
majority of members voting at a general meeting.
(c) The Chairperson, Vice Chairperson, General Secretary and Treasurer shall be termed as the
Executive officers with the Chairperson as the chair of the committee.
(d) The Management committee’s main functions are to formulate, direct and implement
operative and financial policies to ensure the Association members do not lose money, and
receive a competitive interest rate that increases the purchasing power of their savings.
ARTICLE 54: GENERAL FUNCTIONS
MANAGEMENT COMMITTEE
AND
RESPONSIBILITIES
OF
THE
The following are the Committee’s general functions and responsibilities:
(a) Abide by and ensure that the Association abides by the legal, regulatory and the Constitution
provisions, as well as the general meeting resolutions.
(b) To decide on the entrance fee to be paid by new members.
(c) To call for general and special meetings.
(d) To approve policies, guidelines, and operational manuals, financial statements, annual
planning and budgeting, and the salary policies, provided financial statements and budgets
shall be ratified by the general meeting of members.
(e) To submit to the general meeting: a report containing at least activities carried out during the
financial year, results from plans and budgets, and findings of the supervisory committee on
financial statements and the proposal for the disposal of surpluses.
(f) To transact and obtain loans and finances from banking and other financial institutions,
individuals or corporations; to secure loan operations by means of collaterals, mortgages,
pledges of properties, and to transact any other operation with banking, commercial and
insurance organisations.
(g) To appoint a credit sub-committee and other specific sub-committees as deemed necessary;
to prepare or have prepared internal regulations or standard procedures for such committees,
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KJY ASSOCIATION CONSTITUTION ©2020
to determine and define their functions; to appoint or remove officers representing the credit
sub-committee in other organisations.
(h) To examine periodically financial statements and appoint and empower under the
Chairperson’s recommendation authorised persons to handle banking accounts for the
Association.
(i) To move a motion or file the proposal, in conjunction with the supervisory committee, to the
general meeting or to the Registrar to liquidate the Association whenever deemed necessary.
(j) To ensure that the Association undertakes an external audit each year.
(k) Propose, establish and update all the Association’s policies.
(l) To keep detailed minutes of all its meetings containing the discussions held, the resolutions
taken, and the record of the voting.
(m) To be the only body granting authority to use any Association’s assets as collateral for any
external loan, subject to the statutory and regulatory provisions regarding maximum liability
of the Association.
(n) To authorise loans to the Association.
(o) To perform any other functions not specifically provided for in the previous articles which
are to be construed as not restrictive in nature and which may arise out of the scope of its
functions.
ARTICLE 55: SPECIFIC FUNCTIONS AND RESPONSIBILITIES OF THE COMMITTEE
The committee shall be responsible for performing the following specific functions:
(a) Responsible for maintaining the supervisory committee trained up-to-date with the
Association’s policies and processes.
(b) To evaluate independently or with a supervisory committee, the performance of the
Association against specific financial indicators developed for the Savings and Credit
Cooperative Association’s system.
(c) To generate, approve, review and evaluate annually policies regarding: Asset and liability
management, Investments, Cash management and liquidity, Shares, surplus and reserve
management, Loans, Control of delinquency and loan collection, Marketing and business
planning, Suspension of members and Personnel management.
(d) To keep informed of or decide upon the loan applications of members internally linked to the
Association, i.e. loans officers, committee members, financial Association employees and
their immediate family members.
(e) To supervise permanently the functions and responsibilities of Credit Committee.
ARTICLE 56: THE CHAIRPERSON AND VICE CHAIRPERSON
(a) The Chairperson of the Association shall preside at all general meetings and at all meetings of
the Committee except when convened by the Registrar or his representative.
(b) He/she shall perform such duties as he may be directed to perform by the committee, not
inconsistent with the provisions of this Constitution.
(c) The Vice Chairperson shall perform the duties of the Chairperson in his absence, and shall
perform such other duties as the Committee may direct him to from time to time.
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KJY ASSOCIATION CONSTITUTION ©2020
ARTICLE 57: THE TREASURER
The Treasurer shall have a minimum of a Diploma in Accounting and Finance or equivalent.
The duties of the Treasurer shall be;
(a) Generally to manage the financial affairs of the Association in a competent and efficient
manner.
(b) To maintain full and complete records of all assets, liabilities, income and expenses of the
Association.
(c) Ensure that all payments and expenditures are duly authorized.
(d) Ensure the safekeeping of the Association’s money, securities and Books of Accounts.
(e) Ensure compliance with all directives of the Committee.
(f) Supervise his office.
(g) The Treasurer shall cause the preparation and submission to the Committee, the financial
statements showing the position of the Association at the end of each month.
ARTICLE 58: THE GENERAL SECRETARY
The duties of the General Secretary are to:(a)
(b)
(c)
(d)
Ensure the proper record of the minutes of the Committee meetings and General meetings.
Ensure timely communication of notices of meetings.
Perform such other duties as may be assigned to him by the Committee from time to time.
To ensure that the Association’s correspondence is promptly and correctly attended to.
ARTICLE 59: COMMITTEE MEETINGS
(i)
(ii)
(iii)
The committee shall meet at least once a month, on the day and time set by written resolution.
The committee may also meet regularly at the request of any of the committee members by a
written notice of the meeting notified at least 5 days in advance.
Any committee member who misses meetings for three consecutive times and the committee
is of the view that there was no clear reason; such a member may be suspended from the
committee.
ARTICLE 60: QUORUM
Five (5) committee members shall be required as a quorum for the committee meetings.
ARTICLE 61: LEGAL REPRESENTATION
The Chairperson shall legally represent the Association, or, with express approval of the committee,
such representation may be delegated to a manager or other committee member who shall have power
to perform the corresponding duties.
ARTICLE 62: LIABILITY OF THE COMMITTEE
In conduct of the affairs of the Association, the committee and every member thereof shall exercise
prudence and diligence jointly and severally, and shall be responsible for the loss sustained by the
Association through any act which is contrary to the provisions of the Association’s Constitution or
direction of any general meeting.
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KJY ASSOCIATION CONSTITUTION ©2020
ARTICLE 63: TERMS OF OFFICE
(a) As per the Constitution of the Association, the committee shall hold office for a five years’
term; the outgoing committee members shall be eligible for re-election.
(b) A committee member may be removed from office before the expiry of his/her term of office
for any act contrary to the provisions of the Association’s Constitution.
ARTICLE 64: QUALIFICATIONS FOR BECOMING A COMMITTEE MEMBER
As per the Constitution of the Association, no person shall be eligible for a committee membership or
remain a member thereon if:
(i)
(ii)
(iii)
(iv)
(v)
(vi)
(vii)
(viii)
He/she is under 18 years of age.
He/she is not a registered member of the Association, or if he/she is not a member in good
standing.
He/she receives any remuneration, salary or other payment from the Association which
has not been lawfully approved by resolution of the General Meeting.
He/she is in a business competing with that of the Association.
He/she is un-discharged bankrupt.
He/she is of unsound mind.
He/she has been convicted in court of any offence involving dishonesty or she/he is a
dismissed employee of any cooperative Association.
He/she has been removed from the committee of the Association by the Registrar under
Section 53(5) of the Statute.
ARTICLE 65: IMPEDIMENTS AND PROHIBITIONS
To hold office as a committee member, a person must be free of the following impediments and
prohibitions:
(a) Blood relation, up to the 2nd degree, and marriage relation, up to the 2nd degree, with any of
the Savings and Credit Cooperative Association employees.
(b) Commission of illegal acts or any other act that may reflect negatively on the reputation of the
Savings and Credit Cooperative Association.
(c) Delinquency to the payment of the contractual obligations with the Savings and Credit
Association.
ARTICLE 66: CONFLICT OF INTEREST - DISCLOSURE AND EXCUSE
Any committee member having a potential interest or benefit, directly or indirectly, by the
Association, partnership or family relation in any contract or matter involving the Association shall
disclose in writing, the existence of such interest, and shall excuse him/herself from participating in
the deliberations, negotiation and execution of such a contract. Failure to disclose shall result in the
removal of such a committee member from office.
ARTICLE 67: SUSPENSION FROM THE COMMITTEE
Subject to the provisions of this Constitution, the committee shall suspend any of its members if such
a committee is satisfied that the member has:
(a) Persistently violated the provisions this Constitution.
(b) Engaged in business competitive to that of the Association.
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KJY ASSOCIATION CONSTITUTION ©2020
(c) Missed three consecutive committee meetings as provided under Article 59 of this
Constitution.
(d) Lost any of the qualifications or/and is affected by any of the impediments and prohibitions as
provided under Article 64-65 of this Constitution.
ARTICLE 68: PAYMENT FOR SERVICES TO THE ASSOCIATION
Members of the committee and the supervisory committee shall not receive any salary for services to
the Association unless agreed upon at the General meeting; however, they may receive refund of
expenses incurred while performing work for the Association. The committee shall propose to the
general meeting, which shall approve the maximum amount of such expense.
ARTICLE 69: VACANCIES
Until a member is appointed on the committee or supervisory committee at the next general meeting,
the committee or supervisory committee shall appoint a member of the Association who meets the
qualifications to fill any vacancy occurring on the committee or supervisory committee within 30 days
by vote of a simple majority of the remaining committee members. The committee or supervisory
committee shall appoint these members independently.
ARTICLE 70: SUPERVISORY/AUDIT COMMITTEE
(a) Without intervening in the administrative functions subject to its control and supervision, the
supervisory committee is permanently responsible for the Association’s compliance, internal
control and oversight.
(b) It is also responsible for the truth and accuracy of the Association’s financial condition and for
making sure that the Association’s administrative practices and procedures are adequate to
safeguard the members’ and institution’s rights and interests.
(c) The supervisory committee is directly answerable to the general meeting.
(d) The annual general meeting shall elect the supervisory committee consisting of 3 members
who must not be employees of the Association or serving on the executive committee.
(e) Conditions regarding its structure, terms of office, qualifications, re-election, and filling of
vacancies shall be the same as those applicable to the Committee.
(f) Impediments and prohibitions provided for under Article 65 of this Constitution shall likewise
apply to the supervisory committee.
(g) The supervisory committee member shall have some experience in audit, accounting or
general management.
(h) The required quorum to conduct the supervisory committee meeting shall be 2 members.
ARTICLE 71: POWERS AND DUTIES OF THE SUPERVISORY COMMITTEE
The following are the powers and duties of the supervisory committee:
(a) To make sure the Association complies with the provisions of this Constitution, the annual
general meeting resolutions and policies of the committee.
(b) To oversee the performance of the Management Committee.
(c) To examine the Association’s operations as frequently as necessary, at least once a month,
and submit reports of its findings and recommendations to the committee.
(d) To present at the annual general meeting its opinion on the financial statements presented by
the committee.
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KJY ASSOCIATION CONSTITUTION ©2020
(e) To request the committee to propose to the general meeting contracting professional external
audit services subject to the Registrar’s approval, or to propose that the Registrar performs
such services, and to make sure that the auditors’ recommendations are implemented.
(f) To evaluate internal operations and controls (policies and procedures) at least once a month
and make accounting and procedural recommendations regarding such internal controls.
(g) To examine ledgers, documents, accounts, statements, passbooks, perform cash audits,
requests for trial balances and verify securities, any time it deems so necessary.
(h) To evaluate independently or together with the committee and/or with the management, the
financial performance of the Association against specific indicators developed by the system.
(i) To take care of and process all verbal and written complaints filed by the members and inform
the results of its findings to the committee and concerned parties.
(j) To monitor and evaluate the performance of interest rates on savings and loans.
(k) To submit to the general meeting a report on the committee’s activities.
(l) To make with the committee a joint suggestion to the annual general meeting or the Registrar
to liquidate the Association when deemed necessary.
ARTICLE 72: CREDIT COMMITTEE
(a) The Credit Committee shall consist of three members of the Committee which include; the
Chairperson, General Secretary and the Treasurer. The Credit Committee shall hold such
meetings as the business of the Association may require, but not less frequently than once a
month.
(b) The credit committee shall inquire carefully into the character and financial conditions of each
applicant for a loan, and of his guarantors, if any, to ascertain his/her ability to repay fully and
promptly the obligations to be incurred by the applicant; and to determine whether the loan is
for a worthy purpose; and will be of benefit to the borrower.
(c) The credit committee shall endeavour diligently to assist members to solve their financial
problems.
(d) The Credit Committee shall make such reports to the monthly Committee meetings as they
may require, and shall make Annual report to the General meeting.
(e) It will come up with new products that will add value to both the Association and members.
ARTICLE 73: ASSOCIATION EMPLOYEES
(a) The Committee shall have powers to appoint paid employee(s) to carry out such duties as may
be required in accordance with the Terms and Conditions of employment.
(b) All appointments shall be done in a transparent manner and in line with the Human Resource
Policy.
(c) The Committee may require all employees of the Association to provide such indemnity as
when deemed necessary.
ARTICLE 74: REMUNERATION
(a) The committee shall authorise remuneration of the Association employees, which shall be
established in the budget and shall be subject to labour standards, Cost benefit analysis and
Association’s capabilities.
(b) The committee shall decide the terms of employment for the employees.
21
KJY ASSOCIATION CONSTITUTION ©2020
CHAPTER SIX
PROCEDURE FOR THE REMOVAL OF COMMITTEE MEMBERS: ADMINISTRATIVE
INQUEST
ARTICLE 75: ADMINISTRATIVE INQUEST
Ex-officio or written verbal announcement against acts of a committee member presented by any
member to the supervisory committee shall be referred to an administrative inquest commission in
charge of organising the appropriate administrative inquest.
Such commission shall be made up of a member of a committee, the supervisory committee, and an
active Association member, all appointed by the committee and seconded by membership.
ARTICLE 76: PROCEDURE
The supervisory committee will immediately submit their allegation, with the background
information, to the committee for the corresponding constitution of the administrative inquest
commission.
The commission shall then proceed to summon the committee member with the allegation, giving
him/her a 20-day term to submit his/her defence.
In addition, the commission will organise the inquest and findings/report to substantiate the evidence
found and establish whether they are good grounds or not to proceed against the committee member
for his/her removal.
ARTICLE 77: CRIMINAL OFFENCES
Should the allegation involve any criminal offences, the administrative inquest commission,
independently from initiating the removal procedures, shall also inform the Registrar for the
corresponding legal action.
ARTICLE 78: APPEAL
The motion of appeal, together with its written bases, may be filed with the following general
meeting.
22
KJY ASSOCIATION CONSTITUTION ©2020
CHAPTER SEVEN
ACCOUNTS, RECORDS AND APPLICATION OF OPERATIONS
ARTICLE 79: FINANCIAL YEAR
The Association’s financial and accounting period will close on 08th June of each calendar year.
ARTICLE 80: BOOKS, RECORDS AND ACCOUNTING
(a) The Association’s transactions, methods, practices, including accounting books and record
keeping shall comply with Generally Accepted Accounting Principles (GAAPs).
(b) Documents regarding the Association’s financial conditions and performance shall be fairly
disclosed.
ARTICLE 81: AUDITS
(a) The Association shall carry out regular internal audits.
(b) The Supervisory Committee shall be responsible for Auditing the Association books and
records.
(c) The Auditors shall submit audited accounts to the General meeting within 2 months after the
end of accounting period.
ARTICLE 82: GUIDING PRINCIPLES
The Management Committee shall lay down and regularly review policies and procedures for savings,
credit, Liquidity and other services to ensure that they are always in conformity with financial
regulations and the interest to members.
ARTICLE 83: AUTHORIZATION TO SIGN DOCUMENTS
(a) The Chairperson, Vice Chairperson, General Secretary, Treasurer or such other signatories as
May be authorized by the management Committee of the Association may sign Association
documents, contracts, and cheques.
(b) The internal Regulations shall detail which signatories are required for particular operations.
(c) The documents of the Association shall be deemed official where they carry the official stamp
and designated signatories referred to above.
23
KJY ASSOCIATION CONSTITUTION ©2020
CHAPTER EIGHT
MISCELLANEOUS
ARTICLE 84: DISSOLUTION AND LIQUIDATION
(a) The Association shall be dissolved or liquidated for any of the causes set forth in Section 56 –
58 of the Statute and following the procedures mandated by those provisions regarding this
matter, and/or by the decision of the general meeting of the members, where upon notice shall
be given to the Registrar within 14 days
(b) In the event of liquidation, the assets of the Association shall be realized, all liabilities shall be
paid, and all savings shall be refunded to members and any surplus or deficit thereafter shall
be apportioned to each member in proportion of the value of each member’s shares at the date
of liquidation.
(c) In the event of Dissolution of the Association, the assets represented by the reserve fund shall
be applied in the discharge of the liabilities of the Association. Any assets that remain
thereafter, including repayment of share capital representing the balance of Reserve fund, may
be applied to some objective of local or public utility as may be selected by the General
meeting of the Association.
ARTICLE 85: CONFIDENTIALITY
(a) Ordinary members, committee members and members of the sub-committees shall keep
confidential the information regarding the members’ transactions with the Association as well
as all information regarding Association’s interests. Such information may be disclosed only
through the channels authorised by the Provisions of this Constitution or the Management
Committee.
(b) The exchange of information between the Association and financial institutions regarding the
member’s credit history, whether through regulatory or professional agencies authorised to
handle such information is not subject to the above mentioned provision.
(c) In case of breach of confidentiality, besides the resulting action for the resulting damages, the
concerned party shall be removed from office or his/her employment terminated.
ARTICLE 86: FIDELITY BOND COVERAGE
Within Association’s possibilities, any member responsible for the careful and diligent handling of the
Association’s property, collection and disbursement of money or having custody of the Association
property, shall be bonded as required by the Statute or by the committee policy.
ARTICLE 87: POLITICAL AND RELIGIOUS NEUTRALITY
Political or religious issues shall not be topics of discussion at the Association nor shall funds be used
for campaigns of such, or similar nature.
ARTICLE 88: VESTED RIGHTS
Should the committee in any way modify the share certificate par value, those members having paid a
share for an amount less than the new par value shall not be required to pay in as long as those persons
meet the membership criteria.
24
KJY ASSOCIATION CONSTITUTION ©2020
ARTICLE 89: PENALTIES AND FINES
(a) For any breach of these rules and regulations, policies and procedures, such a member shall be
subjected to a fine as per the Constitution of the Association.
(b) The Committee reserves all the rights to charge any member who breaches Association’s rules
and regulations in respect to the stated charges in this provision.
(c) However, the Committee may decide on another punishment to the victim depending on the
size of breach.
(d) The member will be informed of the offense committed and the charge to pay.
(e) Failure of the member to pay the fine in cash, the Treasurer shall deduct it directly from
his/her Savings Account and the member will be informed of the deductions taken.
S/No
1
2
3
4
5
6
7
Case/offense Committed
Not attending at the meeting for personal reasons
Late coming
Chatting during the proceeding
Showing disrespect to a fellow member
Providing false information
Disclosing Association’s confidential information to outsiders
Failure of a member of the Committee to perform his/her duties
Amount Charged
(Ugx)
3,000
1,000
1,000
1,000
5,000
5,000
5,000
ARTICLE 90: EMERGENCY FUNDS
The Emergency fund will act as the insurance against losses due to death, or accidents to members. It
will provide grants to Association members in need.
Therefore, the Emergency fund shall neither be part of the member’s savings nor loaned out.
It’s an obligation of all members of the Association to pay the Emergency fee as allocated per month.
The following are the only ways how the Emergency fund will be disbursed and the specific pay out
amounts;
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
The contribution to the emergency fund will be: Ugx 1000 per month
The Emergency fund contribution will be paid on every 10th day of the month.
The benefits for the death of a Spouse/Biological parent/Child will be: Ugx. 50,000
The benefits for the death of a member will be: Ugx. 100,000
The benefit for severe accident to a member will be: Ugx. 50,000
The benefit for severe illness to a member will be: Ugx. 50,000
The benefit for the wedding of a member will be: Ugx. 100,000
The benefit for Graduation party for a student member will be: Ugx. 100,000
The benefit for the wedding of a member’s child will be Ugx. 50,000
For the case of wedding, the Committee should be noticed in writing two (2) months before the
Wedding day and for the Burial at least 12 hours before the burial.
This period will be enough for the Committee to make investigations for the authenticity of the
information provided by the applicant for Emergency fund.
25
KJY ASSOCIATION CONSTITUTION ©2020
ARTICLE 91: RESOLVING DISPUTES
The Association shall resolve disputes in accordance with Article 75– 78 of the Constitution of the
Association.
ARTICLE 92: INTERPRETATION OF THE BY-LAWS
(a) Any discrepancy in the interpretation of the provisions of this Constitution shall be resolved
jointly by the majority vote of the Executive Committee and Supervisory Committee, and shall
take into account Association legislation and doctrine.
ARTICLE 93: AMALGAMATION
The Association may be amalgamated with any other Association or SACCO as per the Constitution
of the Association.
ARTICLE 94: AMENDMENTS TO THE CONSTITUTION
(a) Two-thirds of the members must agree before the constitution can be changed.
(b) Anyone can propose an amendment to the constitution. Provided no amendment shall become
effective until its approved by the General meeting and registered by the commissioner.
ARTICLE 95: AVAILABILITY AND ACQUISITION OF BY-LAWS
The Association may make available upon request a certified copy of this Constitution from the
registered office of the Association upon payment of a fee not exceeding its actual cost to the
Association. For the purposes of this provision, a copy of this Constitution shall be deemed duly
certified provided it’s endorsed as per this Constitution.
ARTICLE 96: COMMON SEAL
The Association shall adopt and maintain a common seal bearing the words; KAGETI JOINT
YOUTH Savings and Credit Association (KJY-ASSOCIATION)
ARTICLE 97: ACCEPTANCE
We the undersigned members of KJY Association named herein do hereby accept and adopt this
Constitution for and on behalf of KJY Association together with any changes or alterations that have
been initiated or signed by us.
S/No
NAMES
(As Appear on National ID)
MEMBERSHIP
REG. NO
POSITION
1
2
3
4
5
6
7
8
9
MANIRAKIZA EMMANUEL
KANAKULYA IVAN
LUBEGA LAWRENCE
SEMATA PETER
TAREMWA ENOCK
AKASIKU BENARD
NAMARA STELLA
KEMIGISHA JOSEPHINE
KATUNGYE CASBERT
KJY /090620/036
KJY /090620/045
KJY /090620/001
KJY /090620/002
KJY /090620/003
KJY /090620/020
KJY /090620/048
KJY /100720/054
KJY /090620/044
10
TAREMWA BRIAN
KJY /090620/004
Chairman
Vice Chairman
Treasurer
Gen. Secretary
Speaker
Advisor
Advisor
Mobilizer
Members’
Representative
Member
PHYSICAL
ADDRESS
TELEPHONE
NUMBER
Akageti
Akageti
Akageti
Akageti
Akageti
Akageti
Akageti
Akageti
Akageti
0701751585
0753471234
0759 554500
0756936602
0706085293
0752657925
0704134878
0757928309
0756783990
Akageti
0759783327
26
KJY ASSOCIATION CONSTITUTION ©2020
SIGN
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
OWINO PHILIP
TAREMWA MOSES
RWIIJA SHALLON
MUGISHA CHRISTOPHER
MBABAZI HOPE
MUGABE MUZAFAL
AKANDONDA NATHAN
KARUGABA TONNY BLAIR
BYAMUKAMA VINCENT
TINYEFUZA BENARD
MUZAHUURA DANIEL
NGABONZIZA ABDUL
OKECHO RIMON
KANSIIME JENNIFER
AMUMPAIRE EMMANUEL
TURIHAMWE DOMINIC
NUWAMANYA GEOFREY
NAJJUKO REBECCAH
ONZIMA GEOFREY
TUMUSIIME COLLEB
MUBANGIZI EGIDIO
MUGARURA OBED
NANKUNDA JANE
MUSASIZI AGGREY
ABITI SUNDAY
GUMOSHABE AMON
BITUGIRE JOHNSON
KATO DEO
NDUHUKIRE JULIUS
KAKOOZA MARK
NATURINDA BOSCO
BYARUGABA HASHIM
NATUKUNDA GETRUDE
NAMANYA RONALD
AINEMBABAZI OLIVER
NANKUNDA MIRACLE
GLORIAH
NAMUTEBI SULAINAH
NALUKWAGO REHEEMA
ABAHO EMMANUEL
MONDAY KENNETH
TUMUSIIME GEOFREY
KYOHIRWE ADERA
RUGUMAYO EDDY
OPUPA JACK
MUWONGE JOSEPH
SAMULA JOSEPH
KEKIZIMBA EDITH
KJY /090620/005
KJY /090620/006
KJY /090620/007
KJY /090620/008
KJY /090620/009
KJY /090620/011
KJY /090620/012
KJY /090620/013
KJY /090620/014
KJY /090620/015
KJY /090620/016
KJY /090620/017
KJY /090620/018
KJY /090620/019
KJY /090620/021
KJY /090620/022
KJY /090620/023
KJY /090620/024
KJY /090620/025
KJY /090620/026
KJY /090620/027
KJY /090620/028
KJY /090620/031
KJY /090620/032
KJY /090620/033
KJY /090620/034
KJY /090620/035
KJY /090620/037
KJY /090620/038
KJY /090620/039
KJY /090620/040
KJY /090620/041
KJY /090620/042
KJY /090620/043
KJY /090620/046
KJY /090620/047
Member
Member
Member
Member
Member
Member
Member
Member
Member
Member
Member
Member
Member
Member
Member
Member
Member
Member
Member
Member
Member
Member
Member
Member
Member
Member
Member
Member
Member
Member
Member
Member
Member
Member
Member
Member
Akageti
Akageti
Akageti
Akageti
Akageti
Akageti
Akageti
Akageti
Akageti
Akageti
Akageti
Akageti
Akageti
Akageti
Akageti
Akageti
Akageti
Akageti
Akageti
Akageti
Akageti
Akageti
Akageti
Akageti
Akageti
Akageti
Akageti
Akageti
Akageti
Akageti
Akageti
Akageti
Akageti
Akageti
Akageti
Akageti
0753931869
0700288921
0752366740
0703739771
0700928510
0751188095
0758886998
0755945693
0708696298
KJY /090620/049
KJY /090620/050
KJY /090620/051
KJY /100720/052
KJY /100720/053
KJY /100820/055
KJY /100720/056
KJY /100720/057
KJY /100720/058
KJY /100720/059
KJY /100820/060
Member
Member
Member
Member
Member
Member
Member
Member
Member
Member
Member
Akageti
Akageti
Akageti
Akageti
Akageti
Akageti
Akageti
Akageti
Akageti
Akageti
Akageti
0757989087
0777393003
0706024273
0702241590
0758018670
0701246934
0700406198
0708392327
0708624486
0759697496
0751845302
0705031110
0755314600
0754840844
0703195397
0750949474
0758502970
0756064494
0757100890
0754536714
0782649501
0780120852
0771086388
0751866415
0756616133
0700391637
0785879036
0756884498
0705501600
0755808093
0756933531
0703505736
0704332930
0754418633
0701723313
0701320442
27
KJY ASSOCIATION CONSTITUTION ©2020